Missouri state income tax

This notebook shows how Missouri’s state income tax, including credits, operates holistically.

Examples

1 or 2 person household , $1,000/month in rent, under 65, cohabitating.

from policyengine_us import IndividualSim
import pandas as pd
import plotly.express as px

LIGHT_GRAY = "#F5F5F5"
GRAY = "#BDBDBD"
BLUE = "#5091cc"
LIGHT_BLUE = "lightblue"
DARK_BLUE = "darkblue"


def make_tax_under_65(adults, children):
    sim = IndividualSim(year=2021)
    sim.add_person(name="head", age=25, rent=0)
    members = ["head"]
    if adults == 2:
        sim.add_person(name="spouse", age=25)
        members += ["spouse"]
    for i in range(children):
        child = "child{}".format(i)
        sim.add_person(name=child, age=6)
        members += [child]
    sim.add_tax_unit(name="tax_unit", members=members, premium_tax_credit=0)
    sim.add_household(name="household", members=members, state_code="MO")
    sim.vary("employment_income", max=100_000, step=100)
    employment_income = sim.calc("employment_income")[0]
    mo_income_tax = sim.calc("mo_income_tax")[0].round()
    mtr = sim.deriv("mo_income_tax", "employment_income", wrt_target="head")
    return pd.DataFrame(
        dict(
            employment_income=employment_income,
            mo_income_tax=mo_income_tax,
            mtr=mtr,
            adults=adults,
            children=str(children),
        )
    )


# Make a table of state taxes for different numbers of adults and children.
l = []
for adults in range(1, 3):
    for children in range(0, 4):
        l.append(make_tax_under_65(adults, children))

df = pd.concat(l)

LABELS = dict(
    employment_income="Employment income",
    mo_income_tax="Missouri income tax",
    mtr="Marginal tax rate",
    adults="Adults",
    children="Children",
)

COLOR_MAP = {"0": GRAY, "1": LIGHT_BLUE, "2": BLUE, "3": DARK_BLUE}

fig = px.line(
    df,
    "employment_income",
    "mo_income_tax",
    color="children",
    animation_frame="adults",
    labels=LABELS,
    title="Missouri income tax",
    color_discrete_map=COLOR_MAP,
)
fig.update_layout(
    xaxis_tickformat="$,",
    yaxis_tickformat="$,",
    plot_bgcolor="white",
    xaxis_gridcolor=LIGHT_GRAY,
    yaxis_gridcolor=LIGHT_GRAY,
)
fig.show()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

fig = px.line(
    df,
    "employment_income",
    "mtr",
    color="children",
    animation_frame="adults",
    labels=LABELS,
    title="Marginal tax rate for a Missouri household",
    color_discrete_map=COLOR_MAP,
)
fig.update_layout(
    xaxis_tickformat="$,",
    yaxis_tickformat=".1%",
    yaxis_range=[-0.2, 0.2],
    plot_bgcolor="white",
    xaxis_gridcolor=LIGHT_GRAY,
    yaxis_gridcolor=LIGHT_GRAY,
)

1 or 2 person household , $1,000/month in rent, over 65, cohabitating.

from policyengine_us import IndividualSim
import pandas as pd
import plotly.express as px

LIGHT_GRAY = "#F5F5F5"
GRAY = "#BDBDBD"
BLUE = "#5091cc"
LIGHT_BLUE = "lightblue"
DARK_BLUE = "darkblue"


def make_tax_over_65(adults, children):
    sim = IndividualSim(year=2022)
    sim.add_person(name="head", age=75, rent=12_000)
    members = ["head"]
    if adults == 2:
        sim.add_person(name="spouse", age=75)
        members += ["spouse"]
    for i in range(children):
        child = "child{}".format(i)
        sim.add_person(name=child, age=6)
        members += [child]
    sim.add_tax_unit(name="tax_unit", members=members, premium_tax_credit=0)
    sim.add_household(name="household", members=members, state_code="MO")
    sim.vary("employment_income", max=100_000, step=100)
    employment_income = sim.calc("employment_income")[0]
    mo_income_tax = sim.calc("mo_income_tax")[0].round()
    mtr = sim.deriv("mo_income_tax", "employment_income", wrt_target="head")
    return pd.DataFrame(
        dict(
            employment_income=employment_income,
            mo_income_tax=mo_income_tax,
            mtr=mtr,
            adults=adults,
            children=str(children),
        )
    )


# Make a table of state taxes for different numbers of adults and children.
l = []
for adults in range(1, 3):
    for children in range(0, 4):
        l.append(make_tax_over_65(adults, children))

df = pd.concat(l)

LABELS = dict(
    employment_income="Employment income",
    mo_income_tax="Missouri income tax for ",
    mtr="Marginal tax rate",
    adults="Adults",
    children="Children",
)

COLOR_MAP = {"0": GRAY, "1": LIGHT_BLUE, "2": BLUE, "3": DARK_BLUE}

fig = px.line(
    df,
    "employment_income",
    "mo_income_tax",
    color="children",
    animation_frame="adults",
    labels=LABELS,
    title="Missouri income tax",
    color_discrete_map=COLOR_MAP,
)
fig.update_layout(
    xaxis_tickformat="$,",
    yaxis_tickformat="$,",
    plot_bgcolor="white",
    xaxis_gridcolor=LIGHT_GRAY,
    yaxis_gridcolor=LIGHT_GRAY,
)
fig.show()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

Building simulation with reform ()

fig = px.line(
    df,
    "employment_income",
    "mtr",
    color="children",
    animation_frame="adults",
    labels=LABELS,
    title="Marginal tax rate for a Missouri household",
    color_discrete_map=COLOR_MAP,
)
fig.update_layout(
    xaxis_tickformat="$,",
    yaxis_tickformat=".1%",
    yaxis_range=[-0.2, 0.2],
    plot_bgcolor="white",
    xaxis_gridcolor=LIGHT_GRAY,
    yaxis_gridcolor=LIGHT_GRAY,
)
fig.show()